The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?

Aggregate indexes of the quality of governance, covering large samples of countries, are widely used in research and in aid policy. Few studies examine the validity of these indexes, however. This paper partially fills this gap by examining empiric...

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Main Authors: Langbein, Laura, Knack, Stephen
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2008/07/9670849/worldwide-governance-indicators-tautology-causally-related-separable-concepts-indicators-common-cause-or-both
http://hdl.handle.net/10986/6839
id okr-10986-6839
recordtype oai_dc
spelling okr-10986-68392021-04-23T14:02:32Z The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both? Langbein, Laura Knack, Stephen ACCOUNTABILITY ACCOUNTING AGGREGATE INDEXES AGGREGATING GOVERNANCE INDICATORS AUTOCORRELATION BRIBES BUREAUCRACY BUSINESS MANAGERS CITIZENS CIVIL LIBERTIES COMPETITION POLICY CONTROLLING CORRUPTION CORRELATIONS CORRUPT CORRUPTION CORRUPTION PERCEPTIONS CORRUPTION PERCEPTIONS INDEX COUNTRY DATA CRIME CRONY DEMOCRACY DISCRETION DOMAIN ECONOMIC GROWTH ENTRY EQUATIONS EXTRACTING FACTOR ANALYSIS GOOD GOVERNANCE GOODNESS OF FIT GOVERNANCE INDICATOR GOVERNANCE RATINGS GOVERNMENT EFFECTIVENESS GOVERNMENT OFFICIALS GOVERNMENT PERFORMANCE HETEROSCEDASTICITY HUMAN DEVELOPMENT HUMAN RIGHTS HYPOTHESES INCOME INDEPENDENT VARIABLES INDICES INEQUALITY INSTITUTIONAL QUALITY INVESTIGATION LAWS LOGIC MATRIX MAXIMUM LIKELIHOOD ESTIMATION MEASUREMENT ERRORS MEDIA NATIONS PERCEPTIONS INDEX POLITICAL ANALYSIS POLITICAL CORRUPTION POLITICAL ECONOMY POLITICAL INFLUENCE POLITICAL INSTABILITY POLITICAL INSTITUTIONS POLITICAL OFFICIALS POLITICAL PARTIES POLITICAL RIGHTS POLITICAL STABILITY POLITICAL SURVIVAL POLITICIANS PRIVATE GAIN PROBABILITY PUBLIC ADMINISTRATION PUBLIC AFFAIRS PUBLIC INFORMATION PUBLIC MANAGEMENT PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SERVICES READING REGULATORY QUALITY RELIABILITY RESEARCHERS RULE OF LAW SOCIAL CAPITAL SOCIAL INTERACTIONS SOCIAL SCIENCE STATISTICAL TECHNIQUES SUB-SAHARAN AFRICA TAX ADMINISTRATION TAX POLICY TERRORISM TRANSPARENCY UNOFFICIAL ECONOMY VALIDITY VIOLENCE WEB WORLDWIDE GOVERNANCE INDICATORS Aggregate indexes of the quality of governance, covering large samples of countries, are widely used in research and in aid policy. Few studies examine the validity of these indexes, however. This paper partially fills this gap by examining empirically the dimensionality of the Worldwide Governance Indicators. The six indexes purportedly measure distinct concepts of control of corruption, rule of law, government effectiveness, regulatory quality, political stability, and voice and accountability. Using standard statistical techniques for testing measurement validity, the analysis concludes that the six indexes do not discriminate usefully among different aspects of governance. Rather, each of the indexes merely reflects perceptions of the quality of governance more broadly. An implication of the findings is that the Worldwide Governance Indicator indexes are frequently misused in research and policy applications, where it is commonly assumed that the indexes provide distinct measures of different aspects of the quality of governance. A further implication is that Transparency International's even more widely-known aggregate index similarly reflects perceptions not only of corruption, as intended, but of the quality of governance more broadly. 2012-06-01T14:34:23Z 2012-06-01T14:34:23Z 2008-07 http://documents.worldbank.org/curated/en/2008/07/9670849/worldwide-governance-indicators-tautology-causally-related-separable-concepts-indicators-common-cause-or-both http://hdl.handle.net/10986/6839 English Policy Research Working Paper No. 4669 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTABILITY
ACCOUNTING
AGGREGATE INDEXES
AGGREGATING GOVERNANCE INDICATORS
AUTOCORRELATION
BRIBES
BUREAUCRACY
BUSINESS MANAGERS
CITIZENS
CIVIL LIBERTIES
COMPETITION POLICY
CONTROLLING CORRUPTION
CORRELATIONS
CORRUPT
CORRUPTION
CORRUPTION PERCEPTIONS
CORRUPTION PERCEPTIONS INDEX
COUNTRY DATA
CRIME
CRONY
DEMOCRACY
DISCRETION
DOMAIN
ECONOMIC GROWTH
ENTRY
EQUATIONS
EXTRACTING
FACTOR ANALYSIS
GOOD GOVERNANCE
GOODNESS OF FIT
GOVERNANCE INDICATOR
GOVERNANCE RATINGS
GOVERNMENT EFFECTIVENESS
GOVERNMENT OFFICIALS
GOVERNMENT PERFORMANCE
HETEROSCEDASTICITY
HUMAN DEVELOPMENT
HUMAN RIGHTS
HYPOTHESES
INCOME
INDEPENDENT VARIABLES
INDICES
INEQUALITY
INSTITUTIONAL QUALITY
INVESTIGATION
LAWS
LOGIC
MATRIX
MAXIMUM LIKELIHOOD ESTIMATION
MEASUREMENT ERRORS
MEDIA
NATIONS
PERCEPTIONS INDEX
POLITICAL ANALYSIS
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL INFLUENCE
POLITICAL INSTABILITY
POLITICAL INSTITUTIONS
POLITICAL OFFICIALS
POLITICAL PARTIES
POLITICAL RIGHTS
POLITICAL STABILITY
POLITICAL SURVIVAL
POLITICIANS
PRIVATE GAIN
PROBABILITY
PUBLIC ADMINISTRATION
PUBLIC AFFAIRS
PUBLIC INFORMATION
PUBLIC MANAGEMENT
PUBLIC OFFICIALS
PUBLIC RESOURCES
PUBLIC SERVICES
READING
REGULATORY QUALITY
RELIABILITY
RESEARCHERS
RULE OF LAW
SOCIAL CAPITAL
SOCIAL INTERACTIONS
SOCIAL SCIENCE
STATISTICAL TECHNIQUES
SUB-SAHARAN AFRICA
TAX ADMINISTRATION
TAX POLICY
TERRORISM
TRANSPARENCY
UNOFFICIAL ECONOMY
VALIDITY
VIOLENCE
WEB
WORLDWIDE GOVERNANCE INDICATORS
spellingShingle ACCOUNTABILITY
ACCOUNTING
AGGREGATE INDEXES
AGGREGATING GOVERNANCE INDICATORS
AUTOCORRELATION
BRIBES
BUREAUCRACY
BUSINESS MANAGERS
CITIZENS
CIVIL LIBERTIES
COMPETITION POLICY
CONTROLLING CORRUPTION
CORRELATIONS
CORRUPT
CORRUPTION
CORRUPTION PERCEPTIONS
CORRUPTION PERCEPTIONS INDEX
COUNTRY DATA
CRIME
CRONY
DEMOCRACY
DISCRETION
DOMAIN
ECONOMIC GROWTH
ENTRY
EQUATIONS
EXTRACTING
FACTOR ANALYSIS
GOOD GOVERNANCE
GOODNESS OF FIT
GOVERNANCE INDICATOR
GOVERNANCE RATINGS
GOVERNMENT EFFECTIVENESS
GOVERNMENT OFFICIALS
GOVERNMENT PERFORMANCE
HETEROSCEDASTICITY
HUMAN DEVELOPMENT
HUMAN RIGHTS
HYPOTHESES
INCOME
INDEPENDENT VARIABLES
INDICES
INEQUALITY
INSTITUTIONAL QUALITY
INVESTIGATION
LAWS
LOGIC
MATRIX
MAXIMUM LIKELIHOOD ESTIMATION
MEASUREMENT ERRORS
MEDIA
NATIONS
PERCEPTIONS INDEX
POLITICAL ANALYSIS
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL INFLUENCE
POLITICAL INSTABILITY
POLITICAL INSTITUTIONS
POLITICAL OFFICIALS
POLITICAL PARTIES
POLITICAL RIGHTS
POLITICAL STABILITY
POLITICAL SURVIVAL
POLITICIANS
PRIVATE GAIN
PROBABILITY
PUBLIC ADMINISTRATION
PUBLIC AFFAIRS
PUBLIC INFORMATION
PUBLIC MANAGEMENT
PUBLIC OFFICIALS
PUBLIC RESOURCES
PUBLIC SERVICES
READING
REGULATORY QUALITY
RELIABILITY
RESEARCHERS
RULE OF LAW
SOCIAL CAPITAL
SOCIAL INTERACTIONS
SOCIAL SCIENCE
STATISTICAL TECHNIQUES
SUB-SAHARAN AFRICA
TAX ADMINISTRATION
TAX POLICY
TERRORISM
TRANSPARENCY
UNOFFICIAL ECONOMY
VALIDITY
VIOLENCE
WEB
WORLDWIDE GOVERNANCE INDICATORS
Langbein, Laura
Knack, Stephen
The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
relation Policy Research Working Paper No. 4669
description Aggregate indexes of the quality of governance, covering large samples of countries, are widely used in research and in aid policy. Few studies examine the validity of these indexes, however. This paper partially fills this gap by examining empirically the dimensionality of the Worldwide Governance Indicators. The six indexes purportedly measure distinct concepts of control of corruption, rule of law, government effectiveness, regulatory quality, political stability, and voice and accountability. Using standard statistical techniques for testing measurement validity, the analysis concludes that the six indexes do not discriminate usefully among different aspects of governance. Rather, each of the indexes merely reflects perceptions of the quality of governance more broadly. An implication of the findings is that the Worldwide Governance Indicator indexes are frequently misused in research and policy applications, where it is commonly assumed that the indexes provide distinct measures of different aspects of the quality of governance. A further implication is that Transparency International's even more widely-known aggregate index similarly reflects perceptions not only of corruption, as intended, but of the quality of governance more broadly.
format Publications & Research :: Policy Research Working Paper
author Langbein, Laura
Knack, Stephen
author_facet Langbein, Laura
Knack, Stephen
author_sort Langbein, Laura
title The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
title_short The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
title_full The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
title_fullStr The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
title_full_unstemmed The Worldwide Governance Indicators and Tautology : Causally Related Separable Concepts, Indicators of a Common Cause, or Both?
title_sort worldwide governance indicators and tautology : causally related separable concepts, indicators of a common cause, or both?
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/07/9670849/worldwide-governance-indicators-tautology-causally-related-separable-concepts-indicators-common-cause-or-both
http://hdl.handle.net/10986/6839
_version_ 1764400951353933824